Oct 22 08:00 AM PDT  09:00 AM PDT Join to learn strategies for tackling the longest, wordiest examples of Counting, Sets, & Series GMAT questions Oct 22 09:00 AM PDT  10:00 AM PDT Watch & learn the Do's and Don’ts for your upcoming interview Oct 22 08:00 PM PDT  09:00 PM PDT On Demand for $79. For a score of 4951 (from current actual score of 40+) AllInOne Standard & 700+ Level Questions (150 questions) Oct 23 08:00 AM PDT  09:00 AM PDT Join an exclusive interview with the people behind the test. If you're taking the GMAT, this is a webinar you cannot afford to miss! Oct 26 07:00 AM PDT  09:00 AM PDT Want to score 90 percentile or higher on GMAT CR? Attend this free webinar to learn how to prethink assumptions and solve the most challenging questions in less than 2 minutes. Oct 27 07:00 AM EDT  09:00 AM PDT Exclusive offer! Get 400+ Practice Questions, 25 Video lessons and 6+ Webinars for FREE.
Author 
Message 
TAGS:

Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 58410

Last year, Company X paid out a total of $1,050,000 in salaries to its
[#permalink]
Show Tags
20 Apr 2015, 07:53
Question Stats:
59% (02:03) correct 41% (02:16) wrong based on 347 sessions
HideShow timer Statistics
Last year, Company X paid out a total of $1,050,000 in salaries to its 21 employees. If no employee earned a salary that is more than 20% greater than any other employee, what is the lowest possible salary that any one employee earned? (A) $40,000 (B) $41,667 (C) $42,000 (D) $50,000 (E) $60,000 Kudos for a correct solution.
Official Answer and Stats are available only to registered users. Register/ Login.
_________________



Retired Moderator
Joined: 06 Jul 2014
Posts: 1220
Location: Ukraine
Concentration: Entrepreneurship, Technology
GMAT 1: 660 Q48 V33 GMAT 2: 740 Q50 V40

Re: Last year, Company X paid out a total of $1,050,000 in salaries to its
[#permalink]
Show Tags
21 Apr 2015, 09:44
Bunuel wrote: Last year, Company X paid out a total of $1,050,000 in salaries to its 21 employees. If no employee earned a salary that is more than 20% greater than any other employee, what is the lowest possible salary that any one employee earned?
(A) $40,000 (B) $41,667 (C) $42,000 (D) $50,000 (E) $60,000
Kudos for a correct solution. Let's imagine that \(x\) is max salary and \(\frac{x}{1.2}\) is min salary. As we know that total amount of salary equal to 1,050,000 we can write equation: \(20x+\frac{x}{1.2}=1,050,000\) (20 employees with max salary and one with min salary: if we take 20 employees with min salary we will receive bigger number and as we need least possible salary we should take 20 max salaries) \(24x + x = 12,600,000\) \(x = 50,400\) and this is max salary \(50,400 / 1.2 = 42000\) And our answer is C
_________________



EMPOWERgmat Instructor
Status: GMAT Assassin/CoFounder
Affiliations: EMPOWERgmat
Joined: 19 Dec 2014
Posts: 15309
Location: United States (CA)

Re: Last year, Company X paid out a total of $1,050,000 in salaries to its
[#permalink]
Show Tags
21 Apr 2015, 21:41
Hi All, This question is remarkably similar to the following Official GMAC question: acertaincitywithapopulationof132000istobedividedinto11v191085.html?hilit=population%20GREATEST#p1464387The various methods to solve it are exactly the same (including the opportunity to TEST THE ANSWERS). GMAT assassins aren't born, they're made, Rich
_________________
Contact Rich at: Rich.C@empowergmat.comThe Course Used By GMAT Club Moderators To Earn 750+ souvik101990 Score: 760 Q50 V42 ★★★★★ ENGRTOMBA2018 Score: 750 Q49 V44 ★★★★★



Manager
Joined: 15 May 2014
Posts: 62

Re: Last year, Company X paid out a total of $1,050,000 in salaries to its
[#permalink]
Show Tags
22 Apr 2015, 05:56
Assume the \(21^{st}\) guy receives the lowest salary \(x\) and everybody else receives \(x+\frac{20}{100}x\) salary \(x\,+\,20*(1.2x)\,=\,$10,50,000\) \(x\,+\,24x\,=\,$10,50,000\) \(25x\,=\,$10,50,000\) \(x\,=\,\frac{$10,50,000}{25}\,=\,42,000\)
Answer C



LBS Moderator
Joined: 13 Jan 2015
Posts: 97
Location: United Kingdom
Concentration: Other, General Management

Re: Last year, Company X paid out a total of $1,050,000 in salaries to its
[#permalink]
Show Tags
22 Apr 2015, 06:36
Let x be the minimum salary,
Therefore, the maximum salary would be x * 0.2 + x = 1.2x To get the minimum value for x, we have to maximise the value of all the other salaries, therefore we make all the other 20 people earn 1.2x
Total Amount So we have x + 20(1.2x) = 1,050,000 x+ 24x = 1,050,000 25x = 1,050,000 x = 42,000 Answer choice C



Director
Joined: 21 May 2013
Posts: 636

Re: Last year, Company X paid out a total of $1,050,000 in salaries to its
[#permalink]
Show Tags
22 Apr 2015, 09:55
[quote="Bunuel"]Last year, Company X paid out a total of $1,050,000 in salaries to its 21 employees. If no employee earned a salary that is more than 20% greater than any other employee, what is the lowest possible salary that any one employee earned?
(A) $40,000 (B) $41,667 (C) $42,000 (D) $50,000 (E) $60,000
Employee 1 earned $x(say) Employee 2 will not earn more than $1.2x Therfore, to minimize the salary of any one employee, we need to maximize the salaries of the other 20 employees (1.2x*20)+x=1,050,000 Solving for x=$42,000 Answer C



Math Expert
Joined: 02 Sep 2009
Posts: 58410

Re: Last year, Company X paid out a total of $1,050,000 in salaries to its
[#permalink]
Show Tags
27 Apr 2015, 03:53
Bunuel wrote: Last year, Company X paid out a total of $1,050,000 in salaries to its 21 employees. If no employee earned a salary that is more than 20% greater than any other employee, what is the lowest possible salary that any one employee earned?
(A) $40,000 (B) $41,667 (C) $42,000 (D) $50,000 (E) $60,000
Kudos for a correct solution. VERITAS PREP OFFICIAL SOLUTION:Here ask yourself the following questions: 1) The numbers do not have to be integers. 2) Zero is theoretically possible (but probably constrained by the 20% difference restriction) 3) Numbers absolutely can repeat (which will be very important) 4) What’s your strategy? If you want the LOWEST possible single salary, then use your answer to #3 (they can repeat) and give the other 20 salaries the maximum. That way your calculation looks like: x + 20(1.2x) = 1,050,000 Which breaks out to 25x = 1,050,000, and x = 42000. And notice how important the answer to #3 was – by knowing that numbers could repeat, you were able to quickly put together a smart strategy to minimize one single value. The larger lesson is crucial here, though – these problems are often (but not always) fairly basic mathematically, but derive their difficulty from a situation that limits some options or allows for more than you’d think via integer restrictions, the possibility of zero, and the possibility of repeat values. Ask yourself these four questions, and your answer to the first three especially will maximize your efficiency on the strategic portion of the problem.
_________________



Senior Manager
Joined: 12 Aug 2015
Posts: 280
Concentration: General Management, Operations
GMAT 1: 640 Q40 V37 GMAT 2: 650 Q43 V36 GMAT 3: 600 Q47 V27
GPA: 3.3
WE: Management Consulting (Consulting)

Re: Last year, Company X paid out a total of $1,050,000 in salaries to its
[#permalink]
Show Tags
23 Jan 2016, 03:50
Backsolving. Use answer D: if minimum is 50k then 20% greater than that is 60k. Calculate whether the total salary base matches with that: 60*20+50 = way too much. Use answer A (B is ugly so let us leave it for now): 40 + 48*20 = 1000 > too little Let us test C (B is ugly): 42 + 42*1.2*20 = 1050. Bingo!
_________________



Target Test Prep Representative
Status: Head GMAT Instructor
Affiliations: Target Test Prep
Joined: 04 Mar 2011
Posts: 2815

Re: Last year, Company X paid out a total of $1,050,000 in salaries to its
[#permalink]
Show Tags
06 Feb 2018, 18:36
Bunuel wrote: Last year, Company X paid out a total of $1,050,000 in salaries to its 21 employees. If no employee earned a salary that is more than 20% greater than any other employee, what is the lowest possible salary that any one employee earned?
(A) $40,000 (B) $41,667 (C) $42,000 (D) $50,000 (E) $60,000 Since the sum of all the salaries is a fixed amount (which is given to be $1,050,000), the lowest possible salary is obtained when all the salaries besides the lowest one are maximized. Since the greatest possible difference between any two salaries in this company is 20%, all the salaries besides the lowest salary should be 20% more than the lowest salary. We can let the lowest salary = x and the greatest = 1.2x and create the following equation: x + 20(1.2x) = 1,050,000 x + 24x = 1,050,000 25x = 1,050,000 x = 42,000 Answer: C
_________________
5star rated online GMAT quant self study course See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews
If you find one of my posts helpful, please take a moment to click on the "Kudos" button.



Intern
Joined: 25 Nov 2017
Posts: 10

Re: Last year, Company X paid out a total of $1,050,000 in salaries to its
[#permalink]
Show Tags
14 Apr 2018, 02:51
Tmoni26 wrote: Let x be the minimum salary,
Therefore, the maximum salary would be x * 0.2 + x = 1.2x To get the minimum value for x, we have to maximise the value of all the other salaries, therefore we make all the other 20 people earn 1.2x
Total Amount So we have x + 20(1.2x) = 1,050,000 x+ 24x = 1,050,000 25x = 1,050,000 x = 42,000 Answer choice C Dear Tmoni26, You've explained the logic very concisely, clearly & perfectly. Made perfect sense & helped me understand in least possible words. Thank you! Regards, Saumya



Manager
Joined: 24 Sep 2018
Posts: 137

Re: Last year, Company X paid out a total of $1,050,000 in salaries to its
[#permalink]
Show Tags
02 Oct 2018, 00:49
Quote: Last year, Company X paid out a total of $1,050,000 in salaries to its 21 employees. If no employee earned a salary that is more than 20% greater than any other employee, what is the lowest possible salary that any one employee earned?
(A) $40,000 (B) $41,667 (C) $42,000 (D) $50,000 (E) $60,000 This is a min/max problem can be attacked several different ways. If the goal is to find the minimum possible salary among the 21 employees then you want to maximize the salary of 20 employees and see how much is left for the one remaining person with the lowest salary. Since no salary can be more than 20% greater than any other, you want to assign the low salary as x and the remaining 20 salaries as 1.2x (20% greater than x). The total salaries would then be x + 20(1.2x) = 25x. Dividing $1,050,000 by 25 you see that the lowest salary would be $42,000 the correct answer is (C). Alternatively: Quote: Also on this problem, you could back solve using the same logic: start with C and multiply it by 1.2 to get $50,400.
If you multiply $50,400 by 20 and add $42,000 you get the required total of $1,050,000.
_________________
Please award kudos, If this post helped you in someway.



Manager
Joined: 10 Sep 2015
Posts: 67
Location: India
Concentration: Finance, Human Resources
GMAT 1: 640 Q47 V31 GMAT 2: 660 Q47 V35 GMAT 3: 700 Q49 V36
GPA: 4

Re: Last year, Company X paid out a total of $1,050,000 in salaries to its
[#permalink]
Show Tags
22 Oct 2018, 01:35
I am still not sure why we are taking 20 with max salary and 1 with lowest salary. By any means the max difference can come even if we take 1 person with max and 20 with min. But with this, the answer changes. Could someone please help me with this.



VP
Status: Learning stage
Joined: 01 Oct 2017
Posts: 1012
WE: Supply Chain Management (Energy and Utilities)

Re: Last year, Company X paid out a total of $1,050,000 in salaries to its
[#permalink]
Show Tags
22 Oct 2018, 02:06
asthagupta wrote: I am still not sure why we are taking 20 with max salary and 1 with lowest salary. By any means the max difference can come even if we take 1 person with max and 20 with min. But with this, the answer changes. Could someone please help me with this. Hi asthagupta, https://gmatclub.com/forum/acertainci ... 76217.htmlPlease check the explanation of Bunuel in the above link( OG Question), you may raise further specific queries (if any).
_________________
Regards,
PKN
Rise above the storm, you will find the sunshine




Re: Last year, Company X paid out a total of $1,050,000 in salaries to its
[#permalink]
22 Oct 2018, 02:06






